Buy Siemens with stoploss of Rs 821: Aditya Birla Money

MUMBAI: Aditya Birla Money is of the view that Siemens looks bullish on the charts. It has advised traders to buy the stock with a closing stoploss of Rs 821.

“Every time Siemens has tested the inside band and DEMA support it has bounced back sharply and has given strong healthy positive return.

The overall consolidation post high of Rs 847 has shaped up as a probable triangle. RSI has produced a MDRP+ formation which suggests that a slow and gradual fall in price has led to sharp and disproportionate fall in RSI. The MDRP+ formation has occurred right at RSI channel support which further augments its validity.

There has also been emergence of positive divergence between RSI and its derivative. We suggest buying Siemens above Rs 843 with a closing stoploss of Rs 821 for a possible target of Rs 900,” the report said.